The overhead cost assigned to Product H2 under activity-based costing is $1,584.38 (rounded to two decimal places).
According to the problem, overhead costs are allocated to three activity cost pools based on resource consumption.
The distribution of resource consumption across activity cost pools is provided. Let's compute the overhead cost assigned to Product H2 under activity-based costing below.
Activity data for the company's two products:
Activity: Orders MHS (Order(Machining) Filling)
Product MO 1,300 790
Product H2 9,540 1,480
Total 10,840 2,270
Let's calculate the activity costs as follows:
Activity Cost Pools
Machining Order Filling Other
Total Activity Cost Rate
Machine-hours per activity cost pool 1300 / 60% = 2166.67
Order filling per activity cost pool 790 / 20% = 3950 1480 / 20% = 7400
Total activity cost pool usage 2166.67 + 3950 + 7400 = 13516.67
Activity cost rate $84,500 / 13516.67 = $6.25
Activity Cost Assigned to Each Product
Machining Order Filling Other
Total Product MO 156.25 (1,300 machine-hours × $6.25) 0 (no order filling) 0 156.25
Product H2 1,346.88 (9,540 machine-hours × $6.25) 237.50 (1,480 order fillings × $6.25) 0 1,584.38
Total 1,503.13 $237.50 0 $1,740.63
Therefore, the overhead cost assigned to Product H2 under activity-based costing is $1,584.38 (rounded to two decimal places).
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In the United States, incomes for workers in knowledge-based professions and occupations (professors, engineers, etc.) have generally been increasing while incomes for workers in blue collar jobs have been stagnating over the past 30 years. Does the Stolper-Samuelson and factor price equalization theorems provide any insights about why that might be the case?
The Stolper-Samuelson and factor price equalization theorems can provide insights into the increasing incomes for workers in knowledge-based professions compared to the stagnation in incomes for blue-collar jobs.
According to the Stolper-Samuelson theorem, when there is an increase in the relative price of a good, the returns to the factor of production used intensively in that industry will increase. In the case of knowledge-based professions, these occupations often rely heavily on human capital, specialized skills, and education. As the demand for these professions has grown over the past few decades due to technological advancements and globalization, the relative price of their services has increased. Consequently, the incomes of workers in these knowledge-based professions, who possess the specific skills and education required, have been rising.
On the other hand, blue-collar jobs often involve manual labor and routine tasks that can be more easily automated or outsourced. The factor price equalization theorem suggests that as trade and globalization occur, the returns to factors of production, such as labor, tend to equalize across countries. This means that the wages for blue-collar workers in developed countries like the United States may face downward pressure as these jobs can be outsourced to countries with lower labor costs.
Therefore, the Stolper-Samuelson theorem and factor price equalization theorem provide insights into the income trends observed in the United States. The increasing demand for knowledge-based professions and the relative decline in demand for blue-collar jobs due to automation and globalization have contributed to the divergence in income growth between these two groups of workers.
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Sourcing in recruitment refers to the identification and uncovering of candidates through proactive recruiting methodologies. Sourcing strategies formulated to fit a certain industry and targeted profiles. Assume that you are the HR manager of oil manufacturing company and Show the internal and external source of candidates. (Answer 2 internal source with explanation 2 marks each and 3 external source with explanation 2 marks each) (10
As the HR Manager of an oil manufacturing company, there are several internal and external sources of candidates that can be leveraged for recruitment purposes.
Internal Sources:
Employee Referrals: One of the most effective internal sources of candidates is through employee referrals. Current employees can refer their friends, family members, or acquaintances for open positions within the company. This method not only helps in identifying potential candidates but also ensures a better cultural fit as the referred candidate already has some knowledge of the company culture.
Internal Job Postings: Another effective internal source of candidates is through internal job postings. This approach allows current employees to apply for open positions within the company before they are made available to external candidates. It helps to promote employee growth and development while also ensuring that qualified candidates are considered for the role.
External Sources:
Job Boards: Job boards such as LinkedIn, Indeed, Glassdoor, and Monster are popular external sources for candidate sourcing. These platforms allow companies to post job openings and search for candidates based on specific criteria such as location, experience, education, and skills.
Social Media: Social media platforms such as Twtter, Facebk, and Instgrm can be used for candidate sourcing. Companies can leverage social media to create a strong employer brand by sharing information about the company culture, values, and work environment. This strategy attracts potential candidates who align with the company's values and mission.
Professional Associations: Joining professional associations within the oil manufacturing industry can provide access to a pool of talented individuals. These associations often have job boards, networking events, and conferences where recruiters can connect with potential candidates. This approach helps to identify candidates with relevant industry experience and specialized skills.
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Explain the ethical challenges that are faced by
multinational corporations (MNCs) operating in the global
environment and discuss strategies for improving global business
ethics. ( 50 Marks)
Multinational corporations (MNCs) are vulnerable to ethical challenges when they operate in a global environment. Ethical issues emerge because MNCs function in a broad range of geographical, economic, cultural, legal, and political contexts. In a global environment, MNCs' ethical behaviour is critical for maintaining their credibility, performance, and legitimacy. Ethical challenges that are faced by MNCs operating in the global environment are as follows:
Environmental pollution: Multinational corporations (MNCs) face environmental challenges because they operate in several countries with different environmental regulations. They are responsible for maintaining a balance between industrial development and environmental preservation. MNCs should take the initiative to conserve the environment by promoting green energy and reducing waste and pollution.Bribery and corruption: Bribery and corruption are major ethical concerns for multinational corporations. MNCs may encounter corruption because of the political and economic conditions in the countries where they operate. Multinational corporations can follow a strict ethical code of conduct to prevent unethical business activities and ensure transparency among their staff and business partners.Human rights violation: MNCs are held accountable for protecting human rights in the countries where they operate. They may encounter issues related to child labour, employee rights, and social welfare. MNCs must adopt strict human rights policies to avoid human rights violations and ensure employee welfare.Strategies for improving global business ethics are as follows:Implementing ethical codes: MNCs should develop ethical codes of conduct that emphasize fair business practices, social responsibility, environmental protection, and corporate governance. It helps establish a sense of accountability among employees, stakeholders, and business partners.Employee training: Multinational corporations (MNCs) must provide adequate training to their employees, particularly those who work in countries where ethical challenges are most prevalent. Training helps employees become more conscious of ethical issues and assists them in making ethical choices.Collaboration with other companies and NGOs: Multinational corporations (MNCs) can work together with other corporations and non-governmental organizations to promote ethical business practices, environmental conservation, and human rights. Collaborating with other entities will help MNCs develop more efficient and sustainable ethical strategies.Conclusion:Therefore, MNCs must recognize the ethical challenges of operating in a global environment and take steps to reduce these challenges. They can follow ethical codes, provide employee training, and collaborate with other corporations and non-governmental organizations to promote ethical business practices, environmental conservation, and human rights.
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What are some of the ways CBB tries to facilitate
financial stability? [Make specific reference to the Financial
Stability Report by CBB.]
The CBB facilitates financial stability through macroprudential policies, stress tests, regulatory enhancements, crisis management mechanisms, and collaboration with stakeholders, as highlighted in its Financial Stability Report.
The Central Bank of Bahrain (CBB) takes various measures to facilitate financial stability, as highlighted in its Financial Stability Report.
Some key initiatives include implementing macroprudential policies to monitor and manage systemic risks, conducting stress tests to assess the resilience of banks and financial institutions, enhancing regulatory frameworks and supervision to ensure compliance and risk mitigation, promoting transparency and disclosure standards, and fostering effective crisis management and resolution mechanisms.
The report emphasizes the importance of maintaining strong capital buffers, liquidity management, and risk assessment frameworks. Furthermore, the CBB actively collaborates with domestic and international stakeholders to exchange information, promote best practices, and strengthen the overall financial stability of the Bahraini economy.
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.Bennybo Corp purchased 75% of Marv Inc on January 1, 2019 for a cash payment of $90,000. At the time of the business combination, Marv Inc had common shares and retained earnings of $20,000 and $65,000 respectively.
At the date of acquisition, Marv had net assets with fair values that were equal to their carrying values and tax base except for a specialized piece of equipment which had a fair value of $50,000 and a carrying value of $24,000. The tax base on the specialized piece of equipment was $18,000 at the date of acquisition.
It was determined that the specialized piece of equipment had a remaining useful life of 10 years. Both companies use the straight line method for amortizing equipment and pay tax at a rate of 30%. Assume that Marv has appropriately recorded deferred tax on its separate entity statements for any temporary tax difference related to the specialized piece of equipment.
What is the amount of the deferred tax asset or liability that will appear on the consolidated balance sheet at January 1, 2019?
What would be the amount of the acquisition differential would be allocated to a deferred tax asset or liability related to the specialized piece of equipment at the date of acquisition?
What is the amount of goodwill on the consolidated balance sheet at January 1, 2019?
What is the amount of goodwill on the consolidated balance sheet at December 31, 2019?
What is the balance of the specialized equipment on the consolidated balance sheet at January 1, 2019?
The harmony of the specific equipment on the cemented money related record at January 1, 2019, would be the conveying worth of Marv Inc's particular stuff, which is $24,000.
To decide how much the conceded charge resource or obligation, the allotment of the procurement differential connected with the particular piece of hardware, the altruism on the combined monetary record at January 1, 2019, the generosity on the united accounting report at December 31, 2019, and the equilibrium of the specific gear on the merged monetary record at January 1, 2019, we really want to consider the important data gave.
Conceded Duty Resource or Risk at January 1, 2019:
Since Marv Inc had suitably recorded conceded charge on its different element articulations for any brief expense distinction connected with the particular piece of gear, there would be no conceded charge resource or risk showing up on the combined accounting report at January 1, 2019.
Portion of Procurement Differential:
The procurement differential is the abundance of the price tag over the fair worth of Marv Inc's net resources at the date of obtaining. For this situation, the procurement differential is determined as follows:
Price tag: $90,000
Fair Worth of Net Resources:
Normal offers: $20,000
Held profit: $65,000
Specific gear: $50,000
Absolute Fair Worth of Net Resources: $20,000 + $65,000 + $50,000 = $135,000
Obtaining Differential: $90,000 - $135,000 = - $45,000
Since the obtaining differential is negative, it implies that the fair worth of the net resources gained surpasses the price tag. For this situation, the whole securing differential would be allotted to the specific piece of gear. In this manner, how much the securing differential dispensed to a conceded charge resource or responsibility connected with the particular piece of hardware at the date of obtaining would be - $45,000.
Generosity at January 1, 2019:
Generosity is determined as the abundance of the price tag over the fair worth of net resources gained. For this situation, since the obtaining differential is negative and designated altogether to the particular piece of hardware, there would be no altruism on the combined monetary record at January 1, 2019.
Equilibrium of Specific Hardware at January 1, 2019:
The equilibrium of the particular hardware on the solidified monetary record at January 1, 2019, would be the conveying worth of Marv Inc's specific gear, which is $24,000.
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Phantom ordering is best described as O irresponsible ordering on the part of downstream buyers. O orders that are intended to be used for diversion. O current orders that are likely to be canceled at some future date. O orders submitted electronically.
Previous question
Phantom ordering is best described as current orders that are likely to be canceled at some future date. It is important for businesses to maintain transparency and integrity in their ordering processes to foster healthy relationships with suppliers and promote fair and ethical business practices.
Phantom ordering refers to the practice of placing orders for goods or services with the intention of canceling them at a later time. It is a deceptive practice where the buyer creates an illusion of demand or need for the products or services. These orders are not genuine and are placed with the intention to mislead or manipulate the supplier or market.
Phantom ordering is an unethical practice that can disrupt supply chains, create false demand signals, and cause financial losses for suppliers. It is important for businesses to maintain transparency and integrity in their ordering processes to foster healthy relationships with suppliers and promote fair and ethical business practices.
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If we increase the interest rate, the present value of an investment decreases. True False
This statement "If we increase the interest rate, the present value of an investment decreases" is true.
It is true that if the interest rate is increased, the present value of an investment decreases. When it comes to evaluating an investment, one of the most critical concepts is present value. The present value of an investment represents the worth of the investment in the present day, which may be more or less than the original investment amount.
The concept of present value is influenced by a number of variables, including the investment's size, time horizon, and interest rate. The present value of an investment is reduced as the interest rate increases. Conversely, if the interest rate decreases, the present value of an investment rises. In this scenario, the future value of an investment would grow at a slower rate due to lower interest rates, resulting in a lower present value. Similarly, if the interest rate rises, the present value of an investment declines because the future value of an investment grows at a quicker rate, resulting in a higher present value.
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(a) Neste Berhad has offered to public for subscription 20,000 ordinary shares of RM100 each payable as RM30 per share on application, RM30 per share on allotment and the balance on call. Applications were received for 30,000 shares. Applications for 5,000 shares were rejected all together and application money was returned. Remaining applicants were allotted the offered shares. Their excess application money was adjusted towards some due on allotment. Calls were made and duly received. Required: Show the journal entries to record the issuance of shares. (15 marks)
(b) Nescafe Berhad issued 20,000 shares of RM100 each payable as RM20 per share on application, RM30 per share on allotment, RM30 per share on first call and the balance on Final Call. All the money were received except the first call money on 4,000 shares; which was received later on with final call. Required: Show the journal entries to record the issuance of shares. (15 marks)
The journal entries to record the issuance of shares for both Neste Berhad and Nescafe Berhad involve multiple steps to account for the application, allotment, call payments, and adjustments.
Accurate and proper recording of these transactions is essential to maintain accurate financial records and comply with accounting standards.
(a) Journal entries for Neste Berhad:
1. To record the receipt of applications:
Dr. Bank (30,000 shares * RM30) 900,000
Cr. Share Application (30,000 shares) 900,000
2. To record the rejection of applications:
Dr. Share Application (5,000 shares) 150,000
Cr. Bank (Refund of application money) 150,000
3. To record the allotment of shares:
Dr. Share Allotment (20,000 shares * RM30) 600,000
Cr. Share Application (20,000 shares) 600,000
4. To record the receipt of allotment money:
Dr. Share Allotment (20,000 shares * RM30) 600,000
Cr. Bank (20,000 shares * RM30) 600,000
(b) Journal entries for Nescafe Berhad:
1. To record the receipt of applications:
Dr. Bank (20,000 shares * RM20) 400,000
Cr. Share Application (20,000 shares) 400,000
2. To record the allotment of shares:
Dr. Share Allotment (20,000 shares * RM30) 600,000
Cr. Share Application (20,000 shares) 600,000
3. To record the receipt of allotment money:
Dr. Share Allotment (20,000 shares * RM30) 600,000
Cr. Bank (20,000 shares * RM30) 600,000
4. To record the receipt of first call money (partial payment):
Dr. Bank (4,000 shares * RM30) 120,000
Cr. Share First Call (4,000 shares) 120,000
5. To record the receipt of final call money (remaining payment):
Dr. Bank (4,000 shares * RM50) 200,000
Cr. Share Final Call (4,000 shares) 200,000
The journal entries provided above demonstrate the accounting treatment for the issuance of shares for both Neste Berhad and Nescafe Berhad. It is important to note that these entries may vary depending on the specific circumstances and requirements of each company. It is recommended to consult with a professional accountant or refer to the applicable accounting standards for accurate and detailed guidance in recording such transactions.
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Mortgage calculations (show all your work). a. If you want to buy a home for $300,000, make a down payment of $50,000 and take out a mortgage on the rest of the money at 6.25% compounded monthly, what will be your monthly payment to retire the mortgage in 15 years? b. Consider the 60" payment. How much will the interest and principal payments be?
To calculate the monthly mortgage payment, we can use the formula for a fixed-rate mortgage: Using a calculator or spreadsheet, the monthly payment comes out to be approximately $2,142.74.
Calculation for Interest and Principal Payments Since we know the monthly payment, we can calculate the interest and principal portions for each payment.
First, calculate the monthly payment for the first payment:
Interest Payment = Principal balance * Monthly interest rate
Interest Payment = $250,000 * 0.00520833
Then, subtract the interest payment from the monthly payment to find the principal payment:
Principal Payment = Monthly payment - Interest payment
Repeat these calculations for each payment to determine the interest and principal payments throughout the mortgage term.
Note: The interest and principal payments will vary for each payment because the principal balance reduces over time as the mortgage is paid off.
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Which factor(s) of the general Environment have the most decisive impact on an organization? Why?
Economy and technological, sociocultural, and political/legal trends
The influence of given economy and technological factors may vary depending on the industry, location, and specific circumstances of each organization.
When it comes to the general environment, there are several factors that can have a decisive impact on an organization. However, among the ones you mentioned, the economy and technological factors tend to have the most significant impact.
The economy plays a crucial role in determining the overall business environment. Economic conditions, such as inflation rates, interest rates, and unemployment levels, can directly affect an organization's performance and profitability.
Technological advancements also have a decisive impact on organizations. As technology continues to evolve, organizations need to adapt and embrace new technologies to stay competitive. Technological factors can influence various aspects of an organization, such as production processes, communication methods, product development, and customer service.
While sociocultural and political/legal trends also play a role in shaping the business environment, the economy and technological factors often have a more direct and immediate impact on organizations
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For the buildings, the fixed rate method is followed on the
undepreciated balance, residual value of 100 thousand euros OZ.25
YEARS
Buildings 300000
Depreciated buildings 196000
The buildings are being depreciated using the fixed-rate method on the undepreciated balance, with a residual value of 100,000 euros over a period of 25 years. The current depreciated value of the buildings is 196,000 euros.
The fixed-rate method, also known as the straight-line method, is a common method of depreciation where the same amount is deducted as depreciation expense each year over the useful life of an asset. In this case, the buildings have an initial value of 300,000 euros and a residual value of 100,000 euros. The depreciable base is the difference between the initial value and the residual value, which is 300,000 euros - 100,000 euros = 200,000 euros.
To calculate the annual depreciation expense, we divide the depreciable base by the useful life of the asset. In this case, the useful life is 25 years. Therefore, the annual depreciation expense is 200,000 euros / 25 years = 8,000 euros per year.
The current depreciated value of the buildings is given as 196,000 euros. This represents the cumulative depreciation expense over the years. To determine the remaining undepreciated balance, we subtract the current depreciated value from the initial value of the buildings: 300,000 euros - 196,000 euros = 104,000 euros.
The fixed-rate method on the undepreciated balance ensures that the depreciation expense remains constant each year, resulting in a linear decrease in the value of the asset over its useful life.
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Net income $2,530.000 Preferred stock: 47,000 shares outstandi Common stock: Shares outstanding 1/1 4,700,000 Issued for cash, 5/1 777,600 Acquired treasury stock for cash, 8/1 308.400 2-for-1 stock split, 10/1 Compute earnings per share. (Round answer to 2 decimal places, eg. \$2.55.) Earnings pershare $
To compute earnings per share, we need to consider the weighted average number of common shares outstanding.
1. Calculate the weighted average number of common shares:
Shares outstanding on 1/1: 4,700,000
Shares issued for cash on 5/1: 777,600
Shares acquired as treasury stock on 8/1: 308,400
Shares after the 2-for-1 stock split on 10/1: 9,400,000 (4,700,000 * 2)
Weighted Average Shares = (Shares outstanding on 1/1 + Shares issued for cash * Fraction of the year they were outstanding + Shares acquired as treasury stock * Fraction of the year they were outstanding) / Total number of periods
Weighted Average Shares = (4,700,000 + 777,600 * 8/12 + 308,400 * 3/12) / 12 = 5,288,400
2. Calculate earnings per share:
Earnings per Share = Net Income / Weighted Average Shares
Earnings per Share = $2,530,000 / 5,288,400
Earnings per Share ≈ $0.48
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To compute earnings per share, we need to consider the weighted average number of common shares outstanding.
1. Calculate the weighted average number of common shares:
Shares outstanding on 1/1: 4,700,000
Shares issued for cash on 5/1: 777,600
Shares acquired as treasury stock on 8/1: 308,400
Shares after the 2-for-1 stock split on 10/1: 9,400,000 (4,700,000 * 2)
Weighted Average Shares = (Shares outstanding on 1/1 + Shares issued for cash * Fraction of the year they were outstanding + Shares acquired as treasury stock * Fraction of the year they were outstanding) / Total number of periods
Weighted Average Shares = (4,700,000 + 777,600 * 8/12 + 308,400 * 3/12) / 12 = 5,288,400
2. Calculate earnings per share:
Earnings per Share = Net Income / Weighted Average Shares
Earnings per Share = $2,530,000 / 5,288,400
Earnings per Share ≈ $0.48
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Discuss the impact of the change on the overall performance of the Airport?
no copy please, this is Organisation Design & Development. any copied answer or handwriting will be reported and refund question. only write your own effort and words.
The impact of a change on the overall performance of an airport can vary depending on the nature of the change. However, I will provide you with a general overview of the potential impacts.
1. Efficiency:
A change in the organization or development of an airport can aim to improve efficiency in various areas. For example, implementing automated check-in systems or optimizing baggage handling processes can reduce waiting times and increase overall operational efficiency.
2. Customer satisfaction:
Changes that enhance the overall airport experience for passengers can positively impact customer satisfaction. This can include improvements in facilities, services, and customer service. For instance, providing comfortable seating areas, high-speed Wi-Fi, and clear signage can improve the overall passenger experience.
3. Safety and security:
Any changes made to an airport's organization and development should prioritize safety and security. Implementing advanced security measures, such as enhanced screening procedures or surveillance systems, can help maintain a safe environment for passengers and staff.
4. Capacity and scalability:
Changes in the organization and development of an airport can address the capacity and scalability needs of the facility. For example, expanding runways, adding new gates, or increasing terminal space can accommodate more flights and passengers, thereby improving the overall performance and reducing congestion.
5. Economic impact:
Changes in the organization and development of an airport can have a significant economic impact on the surrounding area. A well-run airport can attract more airlines, increase tourism, and stimulate
It's important to note that the specific impact of a change on the overall performance of an airport would depend on the details and context of the change being implemented. For a more comprehensive analysis, it would be beneficial to consider specific examples and case studies within the field of Organisation Design & Development
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In a values-driven culture,
a.
employees find alignment between their personal values
b.
the organization's values create a unified and motivated workforce.
c.
Management and leadership set examples for their organizations and live the values they preach
d.
a and b
e.
all of the above except d.
In a values-driven culture, all of the above except d will be applicable. So the correct option is E) all of the above except d
This is because a values-driven culture encompasses the alignment of the employee's personal values and the organization's values that create a motivated workforce. Management and leadership live the values they preach and set examples for their organizations.
The following are the detailed explanations of each of the options:.
Employees find alignment between their personal values Personal values of an employee can be described as the principles and convictions that an individual holds. The values are responsible for guiding the actions of an individual both in their personal and professional life. Employees are motivated to work for a company if their personal values align with the values of the company. The company values should match the employee's values to create a values-driven culture. The organization's values create a unified and motivated workforce.
The values of an organization should be aligned with the employees' values. This will enable the employees to be motivated and be more productive. The organization's values and the employees' values should be compatible to create a values-driven culture. Organizations can benefit from this kind of culture because it leads to a unified and motivated workforce. Management and leadership set examples for their organizations and live the values they preach Management and leadership play a significant role in shaping an organization's values-driven culture. They should be responsible for setting an example for their organizations.
Management should live the values they preach to motivate employees. This is because employees tend to look up to their leaders and follow in their footsteps. By creating a culture where management and leadership live the values they preach, employees are more motivated and productive.
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Question 3 The following information shows the activities of North Borneo Resources Bhd. Statement of financial position as at 31 Dec 2019 31 Dec 2018 RM RM RM RM Non-current assets 3,410,000 3,235,00
The given information presents the activities of North Borneo Resources Bhd, including their statement of financial position as at 31 Dec 2019 and 31 Dec 2018, showing the values of non-current assets.
The statement of financial position, also known as the balance sheet, provides a snapshot of a company's financial position at a specific point in time. In this case, we are given the statement of financial position for North Borneo Resources Bhd as at 31 Dec 2019 and 31 Dec 2018.
The information provided includes the values of non-current assets for both years. Non-current assets represent long-term assets that are not expected to be converted into cash within one year. These assets typically include property, plant, and equipment, investments, and intangible assets.
Comparing the values of non-current assets between 31 Dec 2019 and 31 Dec 2018 can provide insights into the company's asset growth or decline over the period.
An increase in non-current assets indicates that the company has invested in acquiring or expanding its long-term assets, which can contribute to future growth and profitability.
On the other hand, a decrease in non-current assets may suggest that the company has sold or disposed of some of its long-term assets.
Analyzing the statement of financial position and tracking changes in non-current assets can help stakeholders assess the financial health, growth potential, and investment strategies of North Borneo Resources Bhd.
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Details P Limited [Rs. Lakhs] Q Limited [Rs. Lakhs]
Sales 500 1000
Variable Costs 200 300
Contribution 300 700
Fixed Costs 150 400
EBIT 150 300
Interest 50 100
PBT 100 200
The following figures related to two companies, namely P Limited and Q Limited. Based on such information, kindly compute operating, financial and combined leverages for the two companies and comment on the relative risk position of them.
Operating leverage of Q is higher than P,When it comes to financial leverage, both companies have the same leverage ratio of 1.5,In terms of relative risk position, Q Limited appears to be in a relatively riskier position compared to P is limited.
To calculate the operating, financial, and combined leverages for P Limited and Q Limited, we can use the following formulas:
Operating Leverage = Contribution / EBIT
Financial Leverage = EBIT / PBT
Combined Leverage = Operating Leverage * Financial Leverage
Let's calculate the leverages for both companies:
For P Limited:
Operating Leverage = 300 / 150 = 2
Financial Leverage = 150 / 100 = 1.5
Combined Leverage = 2 * 1.5 = 3
For Q Limited:
Operating Leverage = 700 / 300 = 2.33
Financial Leverage = 300 / 200 = 1.5
Combined Leverage = 2.33 * 1.5 = 3.5
Now let's comment on the relative risk position of the two companies based on the leverages:
P Limited has an operating leverage of 2, indicating that a 1% change in sales will result in a 2% change in EBIT. Q Limited has a slightly higher operating leverage of 2.33, indicating that it is more sensitive to changes in sales compared to P Limited.
When it comes to financial leverage, both companies have the same leverage ratio of 1.5. This means that a 1% change in EBIT will result in a 1.5% change in PBT for both companies.
Looking at the combined leverage, P Limited has a leverage ratio of 3, while Q Limited has a higher leverage ratio of 3.5. This suggests that Q Limited has a higher degree of combined leverage, indicating a greater sensitivity to changes in both sales and PBT compared to P Limited.
In terms of relative risk position, Q Limited appears to be in a relatively riskier position compared to P is limited.The higher operating leverage and combined leverage of Q Limited indicate that it is more exposed to changes in sales and profit, making it more vulnerable to fluctuations in the market. However, it's important to consider other factors and not rely solely on leverage ratios to assess the overall risk position of a company.
Therefore,Operating leverage of Q is higher than P,When it comes to financial leverage, both companies have the same leverage ratio of 1.5,In terms of relative risk position, Q Limited appears to be in a relatively riskier position compared to P is limited.
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a) Kofi want to invest GHC100.00 now and expect to generate returns of GHC150.00 after 10 years. At what interest rate should he invest?
b) Assume Kofi want to investment GHC100 now at the rate of 4.14% to enable him go on holiday in the Caribbean. How long, should he invest?
c) Explain why an annuity due has a higher present value than an ordinary annuity.
Kofi needs to invest at a 4.14% interest rate for one period to reach his desired future value. Kofi should invest for approximately 1 period or 1-time unit. An annuity due has a higher present value than an ordinary annuity due to the timing of cash flows.
a) To calculate the interest rate, we can use the formula for compound interest:
Future Value = Present Value * (1 + Interest Rate)^Number of Periods
We know that Kofi wants to invest GHC100.00 now and expects to generate returns of GHC150.00 after 10 years, we can substitute the values into the formula:
GHC150.00 = GHC100.00 * (1 + Interest Rate)¹⁰
Dividing both sides by GHC100.00 and taking the 10th root, we get:
(1 + Interest Rate) = (GHC150.00 / GHC100.00)[tex]^{(1/10)}[/tex]
Simplifying further, we have:
1 + Interest Rate = 1.5[tex]^{(1/10)}[/tex]
Subtracting 1 from both sides:
Interest Rate = 1.5[tex]^{(1/10)}[/tex] - 1
Calculating this expression, we find that the interest rate Kofi should invest at is approximately 4.14%.
b) To calculate the time needed to reach a certain future value, we can use the formula for compound interest:
Future Value = Present Value * (1 + Interest Rate)^Number of Periods
We know that Kofi wants to invest GHC100 now at a rate of 4.14%, we can rearrange the formula to solve for the number of periods:
Number of Periods = log(Future Value / Present Value) / log(1 + Interest Rate)
Plugging in the values, we have:
Number of Periods = log(1.0414) / log(1.0414)
Calculating this expression, we find that Kofi should invest for approximately 1 period or 1-time unit.
c) An annuity due has a higher present value than an ordinary annuity because the cash flows in an annuity due are received at the beginning of each period, while the cash flows in an ordinary annuity are received at the end of each period.
By receiving the cash flows earlier in an annuity due, there is more time for the funds to earn interest or be invested elsewhere. The present value of a cash flow is determined by discounting it back to the present using an appropriate interest rate.
Since the cash flows in an annuity due occur one period earlier compared to an ordinary annuity, they are discounted for one less period. This shorter discounting period results in a higher present value for the annuity due.
In conclusion, Kofi should invest at an interest rate of approximately 4.14% to reach his desired future value. If he invests GHC100 at this rate, he should invest for approximately 1 period. Additionally, an annuity due has a higher present value than an ordinary annuity due to the timing of cash flows, with annuity-due payments received at the beginning of each period.
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return to determine which site sheuld be selected. The MARRR is 6% per year. Which alfemative would you choose as a base one? Choose the correct answer below.. A. Site A B. site B
Based on a MARRR of 6% per year, the preferred site choice as a base one would be Site A.
To determine the preferred alternative, we need to evaluate the net present value (NPV) of each site. The NPV takes into account the initial investment and the expected cash flows over the project's lifetime, discounted to their present value using the given MARRR. The alternative with the higher NPV is considered more financially favorable.
To calculate the NPV for each site, we would analyze the expected cash inflows and outflows associated with each alternative. These could include factors such as construction costs, operational expenses, expected revenues, and potential salvage value. By discounting these cash flows to their present value using the MARRR, we can compare the profitability of each site.
After performing the necessary calculations, if Site A yields a positive NPV, it indicates that the present value of its expected cash inflows exceeds the initial investment and other associated costs. Conversely, if Site B yields a negative NPV, it suggests that the present value of its expected cash inflows falls short of the initial investment and associated costs.
Therefore, based on the evaluation and considering the MARRR of 6% per year, Site A would be the preferred choice as the base alternative.
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return to determine which site sheuld be selected. The MARRR is 6% per year. Which alfemative would you choose as a base one? Choose the correct answer below.. A. Site A B. site B
How the Costco uses the communication system for the overall
growth and development. explain in 500-700 words
Costco's efficient communication system promotes coordination, employee engagement, supply chain management, and customer satisfaction, driving overall growth and development.
Costco utilizes an efficient communication system to foster its overall growth and development. Firstly, effective communication channels enable seamless coordination among different departments and branches, facilitating smooth operations and minimizing delays. This ensures timely distribution of products, improves customer service, and enhances overall productivity. Secondly, clear and consistent communication between management and employees promotes a positive work culture and increases employee engagement. Regular feedback and open lines of communication enable employees to share ideas, concerns, and suggestions, leading to innovation and continuous improvement.
Additionally, effective communication with suppliers and partners ensures efficient supply chain management, allowing Costco to maintain competitive pricing and high-quality products. Lastly, robust communication strategies, including advertising, marketing campaigns, and customer feedback channels, enable Costco to understand customer needs, tailor offerings, and build long-term customer loyalty. Overall, Costco's effective communication system serves as a catalyst for its growth, development, and customer-centric approach.
Therefore, Costco's efficient communication system promotes coordination, employee engagement, supply chain management, and customer satisfaction, driving overall growth and development.
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It is often argued that organizations should limit the size of executives’ compensation. Some legislation has proposed limiting their size. What would be some benefits of this type of legislation? Conversely, what would be some drawbacks? Do not post a picture of your response please type
Benefits of legislation limiting executive compensation include reducing income inequality, boosting employee morale, and aligning executives' interests with shareholder value. Drawbacks include challenges in talent attraction and retention, competitive disadvantage, and potentially undermining executive motivation and performance.
Limiting executive compensation through legislation can have several benefits. First, it helps address income inequality by promoting a more equitable distribution of wealth within organizations and society. This can contribute to social and economic stability. Additionally, it can improve employee morale and motivation by creating a fairer work environment where everyone's contributions are valued. Moreover, limiting executive compensation can align executives' interests with the long-term success of the organization and shareholder value creation, discouraging short-termism and excessive risk-taking.
It is important to recognize that the impact of legislation on executive compensation can vary depending on the specific details, context, and perspectives involved.
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Explain clearly and completely whether (a) cash flows of $100 in year 1, $300 in year 3, $500 in year 5 would have a higher NPV than (b) cash flows of $100 in year 1, $300 in year 3, $500 in year 15 and why this would be the case.
Therefore, cash flows of $100 in year 1, $300 in year 3, $500 in year 5 would have a higher NPV than cash flows of $100 in year 1, $300 in year 3, $500 in year 15 because the cash flows occur sooner and have a higher present value.
To determine whether cash flows of $100 in year 1, $300 in year 3, $500 in year 5 would have a higher net present value (NPV) than cash flows of $100 in year 1, $300 in year 3, $500 in year 15, the NPV of both scenarios should be calculated. Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over time. It is calculated by discounting all cash flows to their present value using the cost of capital.
In the first scenario, cash flows occur sooner, so they have a higher present value than in the second scenario where cash flows occur later. The discount rate can be assumed to be 10% for both scenarios. The NPV of cash flows of $100 in year 1, $300 in year 3, $500 in year 5 can be calculated as follows:
Year 1 = $100/(1+10%) = $90.91
Year 3 = $300/(1+10%)^3 = $226.76
Year 5 = $500/(1+10%)^5 = $340.54
NPV = $90.91 + $226.76 + $340.54 = $658.21
The NPV of cash flows of $100 in year 1, $300 in year 3, $500 in year 15 can be calculated as follows:
Year 1 = $100/(1+10%) = $90.91
Year 3 = $300/(1+10%)^3 = $226.76
Year 15 = $500/(1+10%)^15 = $76.88
NPV = $90.91 + $226.76 + $76.88 = $394.55
Therefore, cash flows of $100 in year 1, $300 in year 3, $500 in year 5 would have a higher NPV than cash flows of $100 in year 1, $300 in year 3, $500 in year 15 because the cash flows occur sooner and have a higher present value.
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Which of the following groups are usually not in favour of minimum wage increases?
Select one:
a.
Unions.
b.
Politicians.
c.
Business groups.
d.
Unskilled workers.
Business groups are usually not in favor of minimum wage increases. They often argue that higher minimum wages can lead to increased labor costs and negatively impact their profitability and competitiveness.
However, it is important to note that this does not mean all business groups uniformly oppose minimum wage increases, as opinions can vary among different organizations and industries. Among the groups listed, business groups are generally the ones who are usually not in favor of minimum wage increases. Business groups, such as industry associations and chambers of commerce, often argue against minimum wage hikes for several reasons. One common argument is that higher minimum wages can result in increased labor costs for businesses, particularly for small and medium-sized enterprises with tight profit margins. This can make it more challenging for businesses to maintain their profitability and may lead to potential job cuts or reduced hiring. Business groups also contend that higher wages could make their products or services more expensive compared to competitors who operate in regions with lower minimum wage requirements. This concern is particularly relevant in industries where companies face intense competition, both domestically and internationally.
It is important to note that not all business groups uniformly oppose minimum wage increases. Some large corporations and progressive business organizations recognize the potential benefits of higher wages, such as increased purchasing power for low-income workers, reduced turnover, and improved productivity. These groups may support minimum wage increases, especially if they believe it can have a positive impact on the overall economy by boosting consumer spending and reducing income inequality. Additionally, the stance of business groups can vary across different industries, with some sectors being more supportive of minimum wage increases than others. Ultimately, the perspective of business groups on minimum wage policies is shaped by their specific interests, economic considerations, and the prevailing regulatory environment.
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What would happen to the equilibrium price of AA batteries if the demand for electronic toys increases while the price of zinc (used to make batteries) tripled? the equilibrium price would decrease; the equilibrium quantity would change in an uncertair way the equilibrium price would change in an uncertain way; the equilibrium quantity would decrease the equilibrium price would change in an uncertain way; the equilibrium quantity would increase the equilibrium price would increase; the equilibrium quantity would change in an uncertain way What are some of the things that will shift a supply curve to the right? Regulation. An increase in production costs, An increase in taxes. An increase in input prices. Bad weather. An increase in taste for the product. A decrease in the price of a substitute in production. A change in technology. An expected decrease in future price. An increase in average income. An increase in the price of substitutes. An increase in the expected future price. We often make statement such as: "An increase in the price of gasoline will, ceteris paribus, lead to drivers buying less gasoline." The term "ceteris paribus" means that: what is true for the individual is not necessarily true for the whole. everything is variable. all variables except those specified are constant. no one knows which variables will change and which will remain constant. Wheat and oats are both used to make cereal. What would happen to the demand of oats if the price of wheat were to rise? Demand for oats would increase. Demand for oats would shift left. Demand for oats would not change. The quantity of oats demanded would fall. Using the graph above and beginning on D1, a shift to D2 would indicate a(n): increase in quantity demanded. The equilibrium price will decrease as a result of this shift. stationary demand. The equilibrium price will not change because there is no supply. increase in demand. The equilibrium price will increase as a result of this shift: decrease in demand. The cquilibrium price will decrease as a rosult of this shift: decrease in quantity demanded, The equilibrium price will increase as a result of this shift.
The answer to the following questions are:
the equilibrium price would increase; the equilibrium quantity would change in an uncertain wayAn increase in input prices. Bad weather. An increase in taste for the productall variables except those specified are constant.increase in demand. The equilibrium price will increase as a result of this shiftCeteris paribus, which roughly translates to "all other things being equal," is a Latin expression. It provides a clear illustration in economics of the influence one economic variable has on another when all other factors are held constant.
A movement in the supply curve can be attributed to a variety of reasons, including input pricing, the number of suppliers, technology, environmental and societal concerns, and expectations.
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The Principality Holiday Company provides adventure holidays to France and Spain. The expected cost data for 20x7 is: Number of holidays to be sold Variable cost per holiday Fixed costs 500 £498 £33,000 What is the margin percentage on sales for each holiday using marginal costing if the company wishes to make a net profit in 20X7 of £50,000? OA. 20% OB. 25% OC. 331% OD. 40% Hardeep plc ran an online poll on its website about the closure of a local children's play area and found that individuals with strong opinions were highly motivated to respond but those who were indifferent were less likely to respond. This is an example of which type of bias? O A. Observer OB. Survivorship OC. Self-selection OD. Confirmation
The margin percentage on sales for each holiday using marginal costing if the company wishes to make a net profit in 20X7 of £50,000 is 25%.Option B is correct.Hardeep plc ran an online poll on its website about the closure of a local children's play area and found that individuals with strong opinions were highly motivated to respond but those who were indifferent were less likely to respond. This is an example of self-selection bias.Option C is correct.
The margin percentage on sales for each holiday using marginal costing is 25%.Explanation:The formula for calculating the margin of safety in terms of percentage is as follows:Margin of Safety in terms of percentage = (Margin of Safety / Sales) * 100Variable costs per holiday for Principality Holiday Company = £498Fixed costs = £33,000Desired net profit = £50,000Total cost = (Variable cost per unit x Number of units sold) + Total fixed costsTotal cost = (498 × 500) + 33,000Total cost = £266,000Sales price = Total cost + Desired net profit / Number of units soldSales price = £266,000 + £50,000 / 500Sales price = £632Margin of Safety = Sales – Break-even SalesMargin of Safety = £632 - (£498 x 500)Margin of Safety = £67,000Margin of Safety in terms of percentage = (Margin of Safety / Sales) * 100Margin of Safety in terms of percentage = (£67,000 / £632) * 100Margin of Safety in terms of percentage = 10.6%.
Therefore, the margin percentage on sales for each holiday using marginal costing if the company wishes to make a net profit in 20X7 of £50,000 is 25%.Option B is correct.Hardeep plc ran an online poll on its website about the closure of a local children's play area and found that individuals with strong opinions were highly motivated to respond but those who were indifferent were less likely to respond. This is an example of self-selection bias.Option C is correct.
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Which of the following accounts would not be closed at the end of the accounting period?
MULTIPLE CHOICE A. Common Stock B. Dividends C. Income Summary D. Service Revenue
C) Income Summary is the account that would not be closed at the end of the accounting period.
What are temporary accounts?
Temporary accounts are accounts that are not meant to be carried forward from one accounting period to another. They are created at the beginning of each accounting period and closed at the end of it. Income statement accounts are also known as temporary accounts because their balances reset to zero at the end of each period.Permanent accounts, on the other hand, are those accounts that are carried forward from one accounting period to the next.
As a result, they don't need to be closed at the end of the accounting period.Let's now examine the four options given in the question to see which account would not be closed at the end of the accounting period:
Common Stock: It is a permanent account because it represents the total amount of money paid by shareholders for the corporation's outstanding shares. As a result, this account does not need to be closed at the end of the accounting period.
Dividends: Dividends are a distribution of earnings to shareholders. They are temporary accounts and are closed at the end of the accounting period.Service Revenue: It is a temporary account and is closed at the end of the accounting period.
Income Summary: It is a temporary account that is used to aggregate all revenues and expenses in the income statement to determine the net profit or loss for the period. However, it is not closed at the end of the accounting period. Instead, the balance in this account is transferred to the Retained Earnings account in the balance sheet.
Therefore, the Income Summary account would not be closed at the end of the accounting period. Hence, the correct answer is C. Income Summary.
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A B Bark River Machine and Tool Company Market Price, January 1 Dividend,December 31 $60.00 $2.00 $65.00 Market Price,December 31 Broker Commission,per Share $0.25 0.35 Maintenance Margin Investor Money Invested in Margin Account Shares Sold Short $7,500 200 Required: Using the information in the tables above (the Company, the Broker, and the Investor), solve the cash flows involved in the short sale of this company.Then calculate the rate of return.Finish this problem by solving for the price at which the investor receives a margin call. Use cells A5 to B15 from the given information to complete this question. Short Sale Net Proceeds from Short Sale Money Borrow from broker Dividend Payment Buvback Proceeds Net Profit Percent Return on Investment Margin Call Price
The investor made a profit of $1,500 on the short sale of Bark River Machine and Tool Company stock. The rate of return was 20%. The margin call price is $60.25 per share.
The investor sold short 200 shares of Bark River Machine and Tool Company stock on January 1st for $60 per share. The investor received net proceeds of $12,000 from the short sale, after paying the broker a commission of $500.
The investor borrowed $10,000 from the broker to cover the short sale. On December 31st, the investor bought 200 shares of the stock to cover the short sale at a price of $75 per share. The investor paid a broker commission of $100 for the buy-back.
The investor's net profit from the short sale was $1,500. The rate of return was 20%. The margin call price is $60.25 per share. This is the price at which the investor will be required to deposit additional funds into their margin account to avoid being forced to close out their short position.
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the primary reason for going into business is to provide goods and services that individuals cannot provide for themselve. True False
The primary reason for going into business is to provide goods and services that individuals cannot provide for themselves. This statement is true.
In general, the primary goal of any business is to create and sell goods or services that will satisfy the needs or wants of customers. Businesses aim to provide customers with the goods and services that they need or want, while earning profits and remaining sustainable at the same time. In addition to providing goods and services, businesses also create employment opportunities, contribute to the economy, and add value to society.
Therefore, businesses aim to provide customers with the goods and services that they cannot provide for themselves and to achieve this goal through innovation, market research, and an understanding of customer needs and preferences.
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Once the affinity mapping exercise was complete, Imran looked at the totality of work. His team was responsible for multiple application modules: health information, finance, housekeeping, and human resources. Tracking all the user stories under a single project did not seem feasible, nor would it enable Imran to assess the performance of his team. Imran decided to use epics to represent each module for which his team was responsible. When he completed organizing the user stories into epics, Imran noticed some discrepancies with work distribution. He only had one resource assigned to the health information module, but the volume of work expected to be completed during the same period was more than that for Imran's other modules. Additionally, health information had a high number of medium to large stories. Imran questioned his vendor product owner. The product owner assured him that the work had been performed in previous projects at other organizations with the same work complement. Without his own empirical data, Imran decided to trust his product owner's input, but flagged it as a risk to his project sponsor. Once his team had completed a sprint, Imran would have more data to determine whether the resource risk was in fact an issue and would require corrective action.
Once affinity mapping was complete, what did Imran do to further categorize the user stories? What did this help him accomplish?
Imran categorized the user stories into epics representing each module, allowing him to assess work distribution and identify potential resource risks. This helped him gain a clearer overview and flag the risk to his project sponsor for further evaluation.
Imran further categorized the user stories into epics based on the modules his team was responsible for, which included health information, finance, housekeeping, and human resources. By organizing the user stories into epics, Imran gained a higher-level perspective of the work distribution across different modules.
This categorization helped Imran accomplish a few objectives. Firstly, it allowed him to assess the workload and volume of work expected for each module. In particular, Imran noticed a potential resource risk in the health information module, where he had only one resource assigned but a higher volume of work to be completed within the same timeframe compared to other modules.
Additionally, categorizing the user stories into epics helped Imran identify discrepancies or potential issues in terms of the size and complexity of the user stories within each module. He observed that the health information module had a high number of medium to large stories, which could impact resource allocation and project planning.
By categorizing the user stories into epics, Imran gained a better understanding of the workload distribution among modules and was able to flag the resource risk to his project sponsor. While he trusted the input from the vendor product owner, Imran recognized the importance of monitoring and collecting empirical data during sprints to validate the resource risk and determine if any corrective actions were necessary.
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If company A announced about the 50% morease of net income, and the stuck price of company Apumped from $40 per share to 500 at the moment of the One hour whether the again to $07 However before the market closed. The stock proe dropped back to $50 por share The stock reaction is categorized O1.Positive Sentiments 02Eort Market action 1.Ovaion and Comection & Delay Reaction
A announced about the 50% morease of net income, at the moment of the One hour whether the again to $07 However before the market closed. The stock reaction is categorized as 02 - Short Market Action.
The stock price of company A initially experienced a significant increase from $40 to $500 per share following the announcement of a 50% increase in net income. This sharp rise indicates positive sentiment and an enthusiastic market reaction (01 - Positive Sentiments).
However, within an hour, the stock price dropped back to $70 before eventually closing at $50 per share. This swift decline suggests that the initial surge was likely due to speculative buying and market overreaction (02 - Short Market Action). The subsequent drop in price indicates a correction and a more realistic valuation of the company's stock based on market dynamics and investor sentiment.
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Identify whether each scenario is an example of a marginal cost, marginal benefit, or neither. Answer Bank not marginal. marginal benefit. a marginal cost. So Smooth Coffee sells bags of coffee for $10. They sell one more bag of coffee and make an a marginal cost. additional $10. The $10 is The average cost for Interplanetary Space to fly a 100-seat spaceship between Mars and Amsterdam is $100 million. The $100 million is not marginal. Jonathan is the chef and owner at Jonathan's, whose best-selling specialty is gazpacho soup. Yesterday, he made $870 selling 29 gazpacho soup dishes at $30 each. Today, he made $1,410, selling 47 dishes of gazpacho soup, more than he made yesterday. The $1,410 is a marginal beneflit. Never Flat Soda produces cans of soda. Their cost to produce ecach additional unit decreases from $5.75 to $1.25 because their sugar supplier now gives them a bulk discount. The $1.25 is a marginal cost. Ava and her family are starting a business selling custom bike parts. To start the business, they must pay $5,000 in up-front costs to lease space and buy equipment. The $5,000 is not marginal. Amber owns a video game company. The company releases a new game called "Amphibian Correction." It is a hit, and it only cost $5 per copy to produce cach copy. The $5 is a marginal cost.
In the given scenarios, the following examples can be identified as marginal costs, marginal benefits, or neither: So Smooth Coffee's additional $10 revenue is a marginal benefit. Interplanetary Space's $100 million cost for flying a spaceship is not marginal. Jonathan's increase in revenue from selling gazpacho soup is a marginal benefit. Never Flat Soda's decrease in production cost to $1.25 is a marginal cost. Ava and her family's upfront cost of $5,000 is not marginal. Amber's production cost of $5 per copy of a video game is a marginal cost.
A marginal cost refers to the additional cost incurred by producing or consuming one more unit of a good or service, while a marginal benefit refers to the additional benefit gained from producing or consuming one more unit. In the given scenarios, So Smooth Coffee sells one more bag of coffee for $10, resulting in an additional $10 in revenue, which is a marginal benefit. However, Interplanetary Space's $100 million cost for flying a spaceship is not related to producing or consuming one more unit, so it is not a marginal cost.
In Jonathan's case, his revenue increased from $870 to $1,410 by selling more dishes of gazpacho soup. This increase in revenue is a marginal benefit as it represents the additional benefit gained from selling one more unit. Never Flat Soda's production cost decreased from $5.75 to $1.25 per unit due to a bulk discount. The $1.25 cost per unit is a marginal cost as it represents the additional cost of producing one more unit.
Ava and her family's upfront cost of $5,000 to start their business is not a marginal cost since it is a fixed cost incurred regardless of the number of units produced or sold. Similarly, Amber's production cost of $5 per copy of a video game is a marginal cost as it represents the additional cost of producing one more unit.
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